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Canada Rejects Free Trade Deal with China Amid Trump Tariff Threats

February 4, 2026 Priya Shah – Business Editor Business

Canadian ⁢Prime Minister Mark Carney stated Sunday his country has no intention of pursuing a free trade deal with China. He ⁤was responding⁤ to U.S. President Donald Trump’s threat to impose a 100% tariff on ⁣goods‍ imported ‍from ⁤Canada if Canada proceeded with a trade deal with Beijing.

Carney said his recent agreement with China simply reduces tariffs on ⁣a few sectors that had recently faced⁣ tariffs.

Trump disagrees, posting that “China is ⁢successfully⁤ and completely⁣ taking over the once Great Country of Canada. So sad to see it happen. I only hope they leave ⁤Ice Hockey ⁤alone! president DJT”

The prime minister explained that the free trade agreement with the U.S. and Mexico includes commitments ‍not to pursue free ⁣trade agreements with nonmarket economies without prior notification.

“We have no intention of doing that with China or any other nonmarket economy,” Carney said. ‍“What we have done with China is to rectify some issues that developed in the last couple of years.”

In 2024, Canada mirrored the United States by applying a 100%⁣ tariff on electric vehicles from⁢ Beijing and a 25% tariff on steel.

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